Stamp Duty Land Tax Temporary Relief

July 1, 2020
|In COMMERCIAL AND CORPORATE
|By Chan Neill Solicitors

From the 8th July 2020 to the 31st March 2021 inclusive, the UK government has temporarily raised the tax threshold for Stamp Duty Land Tax (SDLT) from £125,000 to £500,000 to help buyers, including first timer buyers, overseas buyers and investors, buy to let investors as well as companies in their purchase of properties in England and Northern Ireland.* 

Our property conveyancing team at Chan Neill Solicitors has summarised the temporary SDLTrelief for you in a straightforward way.  

1. SDLT is a standard tax required by the government paid by the buyer when purchasing a residential property in England and Northern Ireland*.

2. SDLT applies to both freehold and leasehold properties, newbuild or existing properties, commercial or residential properties.

3. SDLT is a tiered, threshold system, where the higher the property value, the higher stamp duty you are required to pay.

4. If you or your spouse own more than one property worldwide (have a property registered under your name or your spouse’s name), you pay an additional 3% surcharge on top of the standard rates for SDLT.

Purchase of sole property (or replacement of existing main dwelling)

SDLT rate

Up to £500,000

Zero

The next £425,000 (the portion from £500,001 to £925,000)

5%

The next £575,000 (the portion from £925,001 to £1.5 million)

10%

The remaining amount (the portion above £1.5 million)

12%

Purchase of an additional property

SDLT rate

Up to £500,000

3%

The next £425,000 (the portion from £500,001 to £925,000)

8%

The next £575,000 (the portion from £925,001 to £1.5 million)

13%

The remaining amount (the portion above £1.5 million)

15%

Companies as well as individuals buying residential property worth less than £500,000 will also benefit from these changes, as will companies that buy residential property of any value where they meet the relief conditions from the corporate 15% SDLT charge.                                       

At Chan Neill Solicitors we are happy to advise our clients regarding complicated legal and tax issues, purchases, sales and re-financing of properties. We can also advise you on moving money from abroad to the United Kingdom.  For any further information please contact us at conveyancing@cnsolicitors.com. 

* In Scotland buyers pay the Land and Buildings Transaction Tax and in Wales buyers pay Land Transaction Tax.